United Stationers seeks talks with Daisytek

CBS.MarketWatch.com

WASHINGTON (CBS.MW) -- The chairman and chief executive officer of United Stationers said his company is still interested in buying Daisytek International Corp., according to a regulatory filing released on Tuesday.

?United Stationers would be interested in entering discussions that could lead to a friendly negotiated acquisition of Daisytek, including its existing interest in PFSweb,? Randy Larrimore told one of Daisytek?s larger shareholders in a telephone conversation on Monday. ?We would welcome a call from Daisytek?s management.?

Mr. Larrimore?s comments were disclosed in a Securities and Exchange Commission filing by Elliott Associates L.P., a New York-based investment fund that is pressuring Daisytek to explore a sale and postpone its planned spin-off of its subsidiary PFSweb (PFSW
PFSW, +2.20%
: news, msgs). See SEC filing and See related story.

A spokesperson for United Stationers confirmed Mr. Larrimore?s comments made in the SEC filing while adding United Stationers wishes to acquire Daisytek because of the ?synergies? that exist between the two companies.

Ken Salmon, an analyst with Tucker Anthony Cleary Gull, who follows both companies, agreed. ?It makes sense for them to come together. Their customers are getting bigger and need a larger distributor.?

However, Daisytek chief financial officer Ralph Mitchell told

CBSMarketWatch.com via e-mail that it plans to stay its present course.

?Given that there has been no offer made with regard to a potential acquisition, Daisytek has nothing to which to respond,? said Mitchell. ?We believe it is in the best interests of shareholders to proceed with our announced plans to spin-off PFSweb on schedule.?

Shares of Daisytek on Tuesday closed up 1 3/8 to 13; shares of United Stationers were down 5/32 to 30 19/32; and shares of PFSweb were up 7/8 to 7 11/16.

Integrated Telecom Express plans $115 million IPO

Integrated Telecom Express, which develops circuits and software for broadband access providers, said Tuesday it is eyeing an initial public offering valued up to $115 million.

The Santa Clara, Calif.-based company said it plans to use the proceeds to develop new products and boost its worldwide sales and marketing efforts. It reported a 1999 loss of $13.6 million on revenue of $3 million, according to documents filed with the Securities and Exchange Commission.

Integrated Telecom also intends to target other high-growth broadband access opportunities - small office and home office networks.

One of the company?s largest shareholders is Intel Corp (INTC
INTC, +0.17%
: news, msgs), which currently owns more than 5 percent of its stock.

Integrated Telecom has enlisted Lehman Brothers as its lead underwriter. It has applied for the Nasdaq ticker ?ITXI.?

Zebu scraps plans for $64 million IPO

Zebu pulled plans for its initial public offering Tuesday, saying only that it does not intend to pursue an offering at this time, according to regulatory papers.

The company had planned to offer $64 million in common stock, according to an initial registration filed on April 20.

In the SEC filing, Zebu President Steven Garber said the company "does not intend to pursue a public offering of its common stock at this time."

The San Francisco-based company provides an Internet platform to standardize insurance application information.

Many companies have recently decided to pull their IPO plans, usually citing market volatility. Last week, Arbinet Holdings and CollegeClub.com yanked their IPO hopes.

Zebu had yet to detail the number of shares it planned to offer or the price per share. The company did plan to use Deutsche Banc Alex Brown as the lead underwriter and intended to trade on Nasdaq under the symbol "ZEBU."

Brocade executives planned to sell stock

Gregory Reyes, Brocade's CEO, and Penny Ann Reyes planned to sell 100,000 common shares of the company, standing to pull in $13.3 million, according to regulatory filings released Tuesday.

The executive planned to sell the stock within 90 days of the filing, dated June 8, and intended to use Deutsche Banc Alex. Brown as the broker.

Brocade Vice President Charles Smith filed with Helen Smith to sell 30,000 shares, valued at $2.7 million. The Smiths also planned to sell their stock within 90 days of the June 8 filing.

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